Choosing a Gas Rebate Credit Card
For the past several years, gas prices have been higher than their historical averages. Unfortunately, it doesn’t look like this trend will reverse anytime soon, considering that countries like China and India are using more petroleum than ever before. To cope with these higher fuel prices, more and more people are turning to gas credit cards; they offer a per-gallon discount or a percentage rebate on fuel purchases.
Gas-Station Affiliated Cards vs. General Gas Rebate Cards
Basically, every gas card falls under one of two categories; a credit card which only gives a discount at an affiliated station, or a general purpose card which gives a discount at every gas station. Each of these has their pros and cons. For example, the Exxon Mobil credit card gives a 5% rebate, but that only applies to purchases at Exxon Mobil stations. Meanwhile, the American Express Gold Card gives only two points per dollar spent on gas, but the difference is that it can be used at any station. Which type will benefit you the most? Well, that depends on where you buy gas. If always buy from the same company, then it might make sense to go with their affiliated card. If you don’t, then it’s probably better to get an American Express, Discover, etc. that can be used anywhere.
Annual Fee vs. No Annual Fee
Some gas rebate cards charge an annual fee… will that make sense for you? For example, the American Express Gold Card (Premier version) charges $175 per year; if you’re not a big spender, this probably won’t be a smart decision. There are others which don’t charge an annual fee (like the Discover More card) but the drawback is there are limits and restrictions on its gas rewards program. Some of the gas station affiliated cards are almost always a bad deal, such as the Chevron credit card. Their “premium” charge card doesn’t offer rewards on gas, except for a short promotional period after you apply. Their Visa version does offer a rebate, but it’s only 10 cents per gallon and only applicable at Chevron stations.
Making The Final Decision
If you’re considering the Exxon Mobil card, Discover More card, or any of the others mentioned, it’s important to realize that there are literally dozens of others to choose from. Make sure you consider each and every one before making your final decision. What’s best for one person may not necessarily be the right choice for you.
Managing Credit Cards Effectively
Luckily, managing credit cards effectively is no rocket science. However, it does take some basic understandings in order to handle debts effectively. For any cardholders, the last thing they want is to aggravate the bad situation any further. These are some tips to have an effective credit card management.
• Always keep an open communication channels with your credit card company. It can help you to stay up to date on any developments or their latest policies to avoid unpleasant surprises.
• Try to continue to pay whenever and whatever you can. Your real efforts in managing the credit card can be a deciding factor when you negotiate for better terms with the credit card company.
• Try to talk to a trusted friend or relative about your financial problems, if a professional financial advisor seems too expensive. Two heads are often better than one! And talking surprisingly helps to relieve your tension and you may get a good advice or two.
• If possible, take up a second job. You will have one more stream of income to pay all your debts. Additionally, you will have less energy and time to splurge on the credit cards.
• Try to cut down your monthly expenses. Find luxurious and wasteful expenses like fancy dining four times a week and reduce it to once for example. Consider about curbing those impulse buyings too.
• Consider selling your valuable assets to raise enough fund. It is one way to effectively pay down your credit card debts when it is pretty big.
• You shouldn’t ask your credit card company to waive any interest charges. Negotiate for lump sum payments and a discount on your interest instead.
• Never use credit facilities again. At least for now. Using cash entirely can help to curb your spending habits as well.
• You shouldn’t forget that a credit card company always has the upper hand. Always remember that you may need an expert assistance with your effort in managing credit card debts.
You may consider credit counseling. It is a drastic step, yet it can save your credit rating. Be sure to check out existing credit counseling companies before you put your trust and money into them. You can find some real scams out there – do not fall for them.
These counselors are usually considered as ‘non-profit’ but that does not mean they don’t make money! How they work is that they take over your debts and they ask some money from you every month. They will negotiate for a lower rate of interest from your credit company and they make payment using the lower interest rate. Essentially they make their profit from your monthly payments that have higher interest rate than the actual interest agreed by your creditor.